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Five-Year Note Auction Draws Above Average Demand

After reporting strong demand for this month's two-year note auction on Tuesday, the Treasury Department revealed Wednesday that this month's auction of $43 billion worth of five-year notes also attracted well above demand demand.

The five-year note auction drew a high yield of 3.530 percent and a bid-to-cover ratio of 2.64.

The Treasury also sold $43 billion worth of five-year notes last month, drawing a high yield of 3.973 percent and a bid-to-cover ratio of 2.46.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.40.

On Thursday, the Treasury is due to announce the results of this month's auction of $35 billion worth of seven-year notes.

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